Correlation Between Mizuho Financial and JSC Halyk
Can any of the company-specific risk be diversified away by investing in both Mizuho Financial and JSC Halyk at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Mizuho Financial and JSC Halyk into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Mizuho Financial Group and JSC Halyk bank, you can compare the effects of market volatilities on Mizuho Financial and JSC Halyk and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Mizuho Financial with a short position of JSC Halyk. Check out your portfolio center. Please also check ongoing floating volatility patterns of Mizuho Financial and JSC Halyk.
Diversification Opportunities for Mizuho Financial and JSC Halyk
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Mizuho and JSC is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Mizuho Financial Group and JSC Halyk bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JSC Halyk bank and Mizuho Financial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Mizuho Financial Group are associated (or correlated) with JSC Halyk. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JSC Halyk bank has no effect on the direction of Mizuho Financial i.e., Mizuho Financial and JSC Halyk go up and down completely randomly.
Pair Corralation between Mizuho Financial and JSC Halyk
Assuming the 90 days trading horizon Mizuho Financial is expected to generate 1.2 times less return on investment than JSC Halyk. But when comparing it to its historical volatility, Mizuho Financial Group is 1.75 times less risky than JSC Halyk. It trades about 0.08 of its potential returns per unit of risk. JSC Halyk bank is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,051 in JSC Halyk bank on August 31, 2024 and sell it today you would earn a total of 749.00 from holding JSC Halyk bank or generate 71.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.74% |
| Values | Daily Returns |
Mizuho Financial Group vs. JSC Halyk bank
Performance |
| Timeline |
| Mizuho Financial |
| JSC Halyk bank |
Mizuho Financial and JSC Halyk Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Mizuho Financial and JSC Halyk
The main advantage of trading using opposite Mizuho Financial and JSC Halyk positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Mizuho Financial position performs unexpectedly, JSC Halyk can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in JSC Halyk will offset losses from the drop in JSC Halyk's long position.| Mizuho Financial vs. China Merchants Bank | Mizuho Financial vs. PT Bank Central | Mizuho Financial vs. State Bank of |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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